Netflix to Offer New Subscription Plan That Will Feature Ads
Netflix has announced that the streaming giant will offer a new subscription plan that will feature advertisements.
In a recent interview with The Hollywood Reporter, CEO Ted Sarandos confirmed the company plans to create a new ad-supported option for customers.
This new tier will come in at a lower price for those who don’t mind advertisements and still want to stream content with the service.
We want to know what you think of Netflix offering an ad-supported plan. Let us know your thoughts in the comments below!
Sarandos commented on the situation during an interview with Kara Swisher for the Sway podcast:
We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,
We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.
Netflix has had its fair share of struggles this past year.
It increased prices for the first time since 2020 and saw a substantial loss in overall subscription numbers.
Netflix Expects to Lose Millions of Subscribers in 2022
It has also begun cracking down on password sharing which many have shown strong opposition to.
However, it looks to improve its customer base by giving users a more affordable package subscription.
We’ve seen other streaming companies take this same approach by offering various subscription tiers including one with ads.
HBO Max, Peacock, and Hulu all offer both an ad-free and ad-supported version of their membership to help gain more subscribers.
Sarandos noted the changes the company has seen this year and its outlook for the future:
We’ve gotten through experiences where the market disconnects from [our] core business and you have to prove the thesis still works, and is going to work long-term. There’s a lot of uncertainty in the world today, and if they get anything that rocks the foundation of the narrative, they get nervous.
These changes are likely to occur towards the end of 2022, however, a confirmed date for the release of this tier is not yet available.
It will be interesting to see how well this new option will do for Netflix with so many competitors now in the streaming space.
Let us know what you think of this situation in the comments below!
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